By Jason Georgatos, President at Partners for Growth
Recently, a big announcement from one of our pioneering Australian portfolio companies, Employment Hero (EH), has gained considerable attention in the tech ecosystem. The company revealed an impressive AUD 263MM Series F financing round, marking a triumph amidst challenging market conditions. This round was led by renowned US investor TCV, known for supporting companies like Spotify, Airbnb, LinkedIn, and Facebook. EH’s accomplishment wasn’t just significant for them; it was a landmark event for the Australian tech industry, being the most substantial financing in 2023 to date.
These accomplishments prompted me to reflect upon our firm’s foundational purpose. At Partners for Growth (PFG), we’re not bound by geography or convention. Our guiding principle, ‘We go where the entrepreneurs are,’ is more than just a catchphrase. It embodies our unwavering dedication since 2004 to support entrepreneurs, whether they’re in the heart of Silicon Valley or any technology hub across the globe. Looking back, our collaboration with EH’s founder, Ben Thompson, stands out. It has been a rewarding journey to witness the feats achieved by Ben and his brilliant team over the decade that has passed since our financing.
Employment Hero: A Decade of Disruption
Today, Employment Hero stands tall as Australia’s leading force in the HR software arena. Their innovative, cloud-native HR and payroll platform caters to small and medium-sized businesses (SMEs) not just in Australia but also in markets including the UK, New Zealand, and Southeast Asia. From streamlined onboarding and recruitment to enhanced employee engagement and performance management tools, EH’s platform covers it all. Their forward-thinking approach is evident as they roll out promising new features, such as early wage access, global payroll, and diversified employee benefits, ensuring they continue their rapid ascent.
Our work with Employment Hero began in 2014, shortly after its inception. Ben Thompson was familiar with the HR industry; he had already scaled two HR-centric companies. However, his vision with EH was unique: leveraging technology to address the nuanced HR requirements of SMEs. His past successes, coupled with EH’s early momentum, made our partnership a perfect fit. PFG crafted a tailor-made debt financing package providing capital across Ben’s three businesses and, importantly, facilitating early-stage capital for EH. This strategic capital raise allowed EH to mature before taking on venture capital financing, preserving valuable equity for its founding stakeholders.
Why Employment Hero’s Series F Financing Round is a Game-Changer
Magnitude: It’s a record-breaker – the largest tech financing in Australia for 2023.
True Value: Achieving a nearly $2 billion valuation amidst a difficult market for raising capital underscores EH’s distinctiveness.
Investor Confidence: Securing TCV, a growth investment titan, as the lead investor for the Series F signals EH’s robust positioning. Moreover, the renewed commitment from existing VC partners further strengthens their stand.
Bright Future: While already a market leader in Australia, EH’s potential in newer regions like the UK and Southeast Asia is immense. The recent financial boost will undoubtedly propel their expansion goals.
Parters for Growth remains an ardent admirer of Ben and the entire EH team. Their achievements serve as a beacon, encouraging other Australian ventures to aim high and realize that building a global tech giant is indeed feasible in the southern hemisphere.
To the Future and Beyond
The PFG team extends heartfelt congratulations to Employment Hero on this remarkable milestone! We eagerly await celebrating their future accomplishments and remain committed to championing the growth of the global tech landscape.
Are you considering an HR and payroll overhaul? Explore Employment Hero’s comprehensive solutions at employmenthero.com. If you’re a tech enterprise aiming to amplify growth, connect with us at pfgrowth.com. Together, let’s script the next big tech narrative!